with e china. there is no evidence outside of the western pacific and china's nine dash line that china has expansionist designs on central europe, southeast asia, a la the russian designs in the crimea, w georgia, the places you have mentioned. what they want to have is a zon. of deference. they want something akin to what we have in thewhere western t t hemisphere where they are the primary actor and if another onh nation is contemplating action s with impact on china they want i china's interests taken into consideration first. it is a magnet because of uld sa china's attractive power because of what china would see as a be-nevada allegedly hegemon.th i think you're correct that china would like to be the most dominant player in east asia pacific or the eastern hemisphere. but they are patient, gradualish and we are not talking about a vision in which the pla is stat marching across borders invading other sovereign nation states. there is really no evidence that this is what china is about. >> a

indeed, china's reclamation and militarization in the south china sea together with china's rapid militarymodernization and expansion are making it more difficult for the united states to defend our allies and our interests from military aggression. simply put, the administration's policy has failed. beijing has been willing to accept a high level of risk to achieve its strategic goals. meanwhile, white house's risk aversion has resulted in an insii indecisive that has alarmed our allies. shaping rather than reacting to beijing's actions will mean adopting policies with a level of risk that we have been unwilling to consider up to this point. the administration must initiate a robust freedom of the seas campaign flying and sailing wherever international law allows. this should include freedom of navigation, operations, designed to challenge china's excessive maritime claims as well as joint patrols and exercises with our allies and partners that span the island chain. we must also maintain our commitment to continued sensitive reconnaissance operations which are critical for gathering mili

deflation, china? >> first, i would like just to make a small comment regarding the reaction of the market. we're overreacting. we're already there. i think that there is no new news. when you look at the situation regarding the oil price or the growth in china as well as the other issues. the global growth. wild, that, for a the situation would not improve markedly in 2016. so i'm a little bit concerned by this overreaction. but the market fears a global slowdown. >> that is not new. we've not have the kind of growth that we were expecting. they don't know who, besides the french, we are really thinking that the economy would take off next year. but this year. >> the market is so nearsighted. it is so immediate. it is not know how to interpret how people have heating and cheaper energy costs and the money will be put back into the economy. we do not see it. it is so incremental. over the course of the next global gdp will be around 3%. maybe not as high as the imf would believe. i am not worried. you'

with china. china is in many ways our a partner.n many ways a looming add server tear -- adversary. what we try to do is put a thumb on the coop are a tiff side of the relationship and emphasize m that over the competitive. that's harder to do. ca >>ller let's hear from bob from maryland on the independent line. >> yes. i'm korean-american. i keep a close eye on what's going on in korea. i don't know if americans are rr aware of how china is really putting pressure on south koreae against the possibility of bringing the thaad system to protect itself against north korea's possible missile tests including nuclear missile tech. i mean, what is the u.s. government really doing about it? i mean, right now. because china is really, really putting a lot of pressure on south korea not to bring it e se although it already has a similar system that can, you know, do the same against the korean peninsula. i want to hear something about that. >> sure. the united states has wanted our ally south korea to deploy, as you said thaad, terminal high

shery: let's go back to china.nt xi says there is no basis for sending the yuan down further. stephen engle has been looking at what the pboc chief had to say. stephen: i want to pick up on thee haidi mentioned about fixing rate. as i sit at the terminal waiting for the latest trade numbers we are going to get, exports and imports, possibly money supply numbers, as well as aggregate financing. we are still awaiting those numbers from beijing if they do indeed come out. right now, the pboc earlier this morning said the daily yuan rate is at a six-week high. the onshore yuan, now trading sharply higher against the dollar, reflecting dollar weakness that we saw over the past week when china was on holiday. isnwhile, the offshore yuan weakening as the discrepancy that built up over the holiday starts to narrow. governoryou said, pboc iata has been often new -- advice, up a slew of saying the exchange rate is basically stable. he says capital outflows in his estimation are normal, despite the estimated record $1 trillio

china and some southeast asian nations are at odds over competing claims in the south china safe. china's construction of artificial islands in the region is seen by the u.s. and other countries as an attempt to increase its military presence. the u.s. has ordered its naval vessels to sail close to the islands in the south china sea, directly showing its discontent to beijing. china is vying to expand their presence in southeast asia. it is now working on strengthening ties with nations that have maintained a neutral stance. >> translator: relations between china and the nation's militaries are moving towards deeper cooperation. >> reporter: last year, china and malaysia held a major joint military drill. china is also buying its way to closer ties. chinese premier li keqiang visited malaysia. he pledged bigucks for the construction port facilities. the chinese government is spendi nearly $10 million on the project. china is expected to surpass singapore as the top investor in malaysia for the first time. >> malaysia is in central of this south asia region. so if china manage to p

rishaad: and demand coming from export out of china. we saw steel production in china peak in 2014. continued to go up. how is that hurting your business? are they dumping that steel? i think there's been a lot of conversations about dumping and there's been a lot of cases that have proven dump rocks, not only out of china, but out of many other countries as well. i think there's a push by almost every consuming country in the world to protect their domestic industry from unfair competition or trade. that is the same as australia. there is going to continue to be significant exports out of china. my view over the next 12 months is that will start to reduce somewhat. it has a big effect on price. rishaad: you said earlier that most of these chinese steel makers aren't making money. how do you know that? basically, through public pronouncement. and through conversations with those steelmakers through our sales to them. between 30 tog 100 are in the on every ton of on every30 to 100 rmb ton of sales. we don't have any internal or inside information beyond the markets, but we watch all

at china differently and growth is large part of the view. >> china can ebb and flow. there are different considerations with gdp growth in china, the housing market and different economic considerations, but as far as retail goes, in terms of luxury goods and global brands, it's a very important market for the long term. so retailers can't really ignore this market and need to continue to invest in it. and also build their awareness and their brand and their identity globally. >> reporter: on a conference call, bernard arno, ceo of luxury conglomerate acknowledged the economic slowdown in china but also said, quote, many observers underestimate the fundaments of china's economy noting household consumption is on the rise there. like other retailers, the luxury goods seller looks to the country as a long-term growth driver. pvh corp will buy the remaining interest in the tommy hilfiger in china. china is the fastest growing market for calvin klein and tommy hilfiger. michael kors and coach reported double digit comparable sales growth in china while noting weakness in

in the china factory sector.his is after we saw back in contracted 49.7 , on the non-manufacturing side, we have seen things edged down slightly after we saw quite a big number in december, the highest number we had seen in a year. now, on the nonmanufacturing side, at 53.5. for the month of january. take a look at the manufacturing side. economists they don't get too obsessed with these incremental changes in the index, because we continue to see the policy support has been accommodative, and has stabilize the sector. but not enough at this point to really trigger some stronger activity on the manufacturing friends. but, we suspect the policy will stay in stimulus mode this year. the balance now will shift from monetary to fiscal for 2016. we also saw that metal prices remain extremely depressed. i think we are on some of the historic lows. toly signs, pointing somewhere between stability versus fractional slowdown. when it comes to nonmanufacturing sector, the critical point was, whether service or strength wou

obviously we're in china. china is one of the points of focus. but it's not just about china.al economy and global markets, just as you mentioned. we've seen a lot of changes overnight here in china. >> tim, do you feel that china is going to have to significantly devalue its currency? maybe not immediately. maybe not on the agenda for this particular meeting. but at some point over the next year, is that now inevitable, and to the tune of 5% plus rather than these half a percent moves we've seen so far this year? >> sure. i don't know if it's inevitable. the message has been one of confidence that they're going to manage the exchange rate, managing the dollar as well. they seem to be confident they can mng their way through this. i think that's the messaging we're going to hear, that they delivered to their counterparts over the next 48 hours. >> that's the messaging. do you believe it? >> well, this is a complex place. i've been coming to china for to years. i think there's a lot going on here. obviously there's enormous pressure with respect to net capital outflows, which y

xi appearingin and in china. is popular in china.increasingly work together in the united nations. but there are still limits on their working together. there is a certain amount of smoke and mirrors in trying to present a sino-russian partnership has more than it is to date. that whatnot said russia is doing in the ukraine and crimea is meeting with its approval. russia has not affirmed china's claims in the south china sea. there is mutual suspicion but they are coming together as well. host: robert daly talking about -- talking about china. if you want to ask questions, (202) 748-8001 republicans. (202) 748-8000 democrats. .ndependence, (202) 748-8002 caller: i have three comments. -- his analysis of china's economic status is fundamentally flawed. the most polluted planet on the earth is china. this affects their gdp, everything about them. we think that the air pollution is a problem, but it is just the tip of the iceberg. everything that is grown in china is contaminated with heavy metals. everything made in china is contaminat

. >>> overnight china moving missiles into a disputed island in the south china sea. we're breaking down what all of that could mean next. >>> breaking overnight, heightened tensions in the south china sea. china has deployed surface-to-air missiles on an island chain in the waters. ivan watson is live for us in hong kong. ivan, not 12 hours ago they were urging restraint in this very neighborhood and now they report that this is an advanced missile deployment there. >> that's right. and some people are interpreting this as a chinese provocation. let's get to the map here. u.s. and taiwanese defense ministers say they put these missiles on this woody island here in the south china see. it's in an area not only claimed be i china but also by vietnam and taiwan. why does this matter? china has had a presence here for more than 50 years. it has an air strip here. why it matters here, take a look at the china sea here. this is a body of worder that an estimated 30% of the world's shipping passes through. it's also an area that china claims largely for itself all the way d

satellite images show china has installed missiles on the south china sea.e are the pictures of woody island in the paracels. this is the northern shoreline. an empty and coastline. images on sunday show a different picture. of eight to batteries missile launchers and a radar system. china says it is a media invention, and it has said it has the right to necessary self-defense facilities. i spoke an earlier time ago with my: who was the deputy of the secretary of states for a east asian and pacific affairs. you make of the timing of this missile installation, coming off of the heels off of a summit that called for a peaceful resolution for these sorts of maritime disputes? show you the will contrast in how china is approaching the issue in the south china sea versus how the united states and other countries in the region are approaching the issue. many countries in the region want to take a diplomatic approach, one that upholds international law of the peaceful resolution of disputes. that was the top of the agenda when president obama met with the leaders a

we will focus global expectations away from china. we will be looking at other global economies, as always happens in situations like this. everybody is talking about india again. it is an up and down the economy. the effects of this looming financial crisis will be felt primarily on the drivers of chinese growth. that is what will panic some people in the global markets and yes, it will result in a weaker yuan. once we get past this, people will put it into the bucket of china in transition. story ish of that going to be a china that is not growing as fast as we all expect. it will not be driving global economies. it will become something more of an economic backwater long-term. anna: you said in your notes that china has been around for a long time. bill: it has been around for an awfully long time. anna: when you hear this zbanks when commer they say they are not sure where and therefore,re they don't have to provision them. we don't have the transparency we want around the banking sector. bill: i absolutely agree with analysis lik

sea, to china, the republic of china. and the united states kansas in taking the islands in in the brent seabrook, and at the time -- in the south china sea. many of the countries are not cooperating. they want european powers in that part of the world. that is the history. china is not afraid with the international community. china's ownership for the islands see the time at the end of the world war. china needs to approve again these islands in. these are disputed. it does not many much. china will stand firm on its claims to the islands in. and sovereignty with that. that is where they want to go through some of these countries to innocent vice them to come into more and more of an area with china, china is prepared to deal with that. the united states really need to stand and under the consequences in the brent seabrook, and accuse china of being the culprit party in the escalation. >> thank you so much. >> thank you for having me. >> a woman is being arrested after 30 hours beneath the ruins of the northern province

and we are talking china.ith the new five year plan being presented in 2016, how can the world's second-largest economy shift gears without stalling its growth engine? and what does the market volitility tell us about the perception of china, and the task facing chinese regulators? well, we have, i am pleased to say, an a-star panel. thank you so much for coming on. jiang jianqing, chairman of the board of the industrial & commercial bank of china. christine lagarde, the managing director at the imf. fang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. gary cohn, president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at -- chief investment officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have see

china bucked the trend. shanghai composite down by a fraction, as we see there, 2862 for the closing number, discouraging inflation numbers fueled hopes for more government stimulus, but profit taking wiped out earlier gains. here's a hook look at some of t other business stories we're following today. >>> toyota motor officials have announced a global recall of almost 2.9 million vehicles. they say the seat belts could be damaged by a metal part in the event of a crash. it applies to the rav4 between 2005 and 2014 and the vanguard produced in japan between 2005 and january this year. >>> government officials say in january, japan's trade balance was in the deficit by nearly 650 billion yen, that's about $5.7 billion. they say exports were down 13% from the same month last year. imports declined by 18%, as prices of crude oil and liquid natural gas fell sharply. >>> and, as mentioned, the four figures show in january china's consumer price index was up 1.8% from a year earlier. that was a slight improvement

washington is seriously concerned about china's increased in the south china sea. responding to reporting that beijing has deployed surface to air missiles in the region and pointed out the contradiction to remarks made by china's president last fall. >> they stood in the rose garden with president obama and said china will not military yoois in the south china sea. there is evidence everyday that there has been an increase of one kind or another. it's of serious concern. >> kerry told reporters the united states expects to have very serious talks with china over the coming days. on wednesday, u.s. officials confirmed the apparent deplo deployment in the miss sill systems on the par sol island chain. fox news appeared to show a radar system. the u.s. media say they may have been deployed last week. the foreign minister declined to confirm it, but justified the build-up. >> the facilities are for military and for self-defense. they're totally consistent with the right of self-defense given to all nations by international laws. and there is no room for criticism. >>

china's government is resisting that. it wants to control the direction of its currency and not have foreigners do it for them. a fuller picture will come next month when we get figures relating to retail sales, vechl and industrial output >>> president obama is hosting south-east asia leaders for a two-day summit at a california desert retreat. he will be hoping the efforts bear fruit. >> reporter: there are 6500 nautical miles of pacific ocean between south-east a sha and the west coast of the united states. for the president the asean region's dynanism is central to global economic growth and security in the 21 st century. that's why he hats invited the ten leaders to come to california and have an informal discussion, basically to sure them of u.s. engagement and commitment to that region but at the same time to remind the leaders that the relationship is mutual beneficial. u.s. officials say the talks are not meant to focus on china, but they will discuss maritime security. for asean countries are embroiled in disput

he said china and the new security council resolution. he said he thinks the six-party talks ought to be restarted soon. south korean officials are talking with the u.s. about deploying an american anti-missile system that has drawn condemn nation from the north. a commentary from state media said deploying the anti-missile system would heighten military tension. the previous day officials said they were talking with the u.s. about getting a system called thad. they began the talks after the north's rocket launch seen as a cover for a missile test. the north korean commentary said political and military tension would lead to a physical slash. it warned that south korea would be targeted by countries neighboring the north. analysts suggest the commentary was referring to china and russia. the chinese government doesn't want the anti-missile system in south korea because its radar would reach china. russian leaders have expressed opposition. >>> japan's has faced off with his predecessor in a rare debate. shinzo abe and noda discussed refor

narrator: and china drives the demand for ivory. knights: china now is estimated to be 70% of the world's ivory market. there is a tradition of ivory carving, but also, of course, the massive growth of the chinese economy. narrator: around 300 million people make up china's middle class today. that's more than the population of the united states, and they are looking to spend their money on luxury goods. ivory has particular appeal because of its long history in china. it has been carved there for more than 2,000 years, expressing many core chinese cultural and traditional values. knights: i think in some cases, people are speculating that ivory is almost like a currency that they can invest in for the future. alie: you walk through beijing and in some of the stores you see ivory mantelpiece, exquisite carvings going for like 50,000 u.s. dollars, 60,000 u.s. dollars. knights: but in addition to that, you have things like chopsticks, bangles that people wear, small carved items. all these things are made from ivory, and unfortunately

route appointment in china.y will have about 9% of their capacity in china this year. carnival, about 5%. not significant, but a significant growing opportunity that will carry caribbean prices. ahead, oil is sliding, having its worst two-day drop since 2011. stocks also plunging. is this the new normal? ♪ david: from bloomberg world caters new york, this is bloomberg markets. -- from bloomberg world head quarters york, this is bloomberg markets. launched theirns latest doomed attempt to kill president obama's health care overhaul. legislation cutting much of the law and also ending federal payments to planned parenthood. torepublicans are poised hold another vote today for the 60th time to repeal obamacare. it is almost like it is groundhog day. it actually is groundhog day and they are doing it again. mark: this is the 62nd time the house has voted to repeal the affordable care law since republicans took control of the chamber in 2011. beating back a strong challenge from senator bernie sanders. the iowa democ

china has been accused of a currency war to boost exports. china denies that. no signs of panic over what is happening to the economy. quite the reverse. if you go to some of the side streets, people are spending and spending big. the chinese government is hoping that in many ways the consumer will be the saviour of the chinese economy. >> one of the world's most iconic steam chains made the most awaited return to the track. the flying scotsman underwent a refurbishment at a cost of under $6 million. it set off from london to york. emma heyward is on board. >> it is the symbol of a bygone era when rail was king, and almost 100 years after the flying scotsman made its debut, it's back on the track. with thousands turning out as it made its long journey from london to york. >> this is a deep appeal, and it's elemental. it's fire and water. and it really is something deep within the d.n.a. in its heyday this locomotive was a record breaker, the first to hit speeds of 100 miles or 160 k/hr. it's modern name sake can travel twice as fast on the same line. >> what th

you talk about momentum in china.ot this disastrous week with pmi coming out from the mainland. services, we did see continued expansion, but is that going to offset the old drivers of the economy, or do you still see there is going to be this really big tug-of-war and transition phase for china? peter: well, i think what is reflective with china is global. there is a big split between the opportunities for consumers generally, where conditions are improving but real incomes are beginning to rise, low commodity prices, and in many places, fiscal policy is finally easing, and by contrast, the manufacturing and industrial economy, like the structural headwinds are really very intense because of the fourth capex, butng cuts in also cuts in capital spending in emerging economies, so that is put between the relatively strong consumer and the weaker industrial economy. i think it still has to play out. some sectors are we would need to of work, but what about possible strength and green shoots in 2016? peter: are our market

and china agreed to the sanctions on wednesday. the two big powers had different views on how to approach them. washington wanted a harsh punishment, while beijing preferred dialogue. the security council could vote as early as this week. >>> the operator of the crippled nuclear plant says it is moving forward to contain radioactive water at the facility. tokyo electric power company says it will soon be able to stop the influx of contaminated water in some parts of the plant's reactor facility. they're still filled with highly radioactive water. contaminated water from three of the reactors is flowing into adjacent turbine buildings, filling their basements as well. tepco has been trying to reduce the amount of such water in the reactor buildings. it has been taking measures to stop ground water around the reactor buildings from flowing in. the utility has also been pumping up contaminated water from the facilities. >>> tepco officials say the are loeg water levels in the reactor facilities, in the number one reactor, the water le

think china is terrific i'm not angry china. angry at our leaders for not being able to compete with china. [applause] we're going to get things changed. we're going use our best people. we're going to start winning again. strong military. take care of our vets. have such great trade deals. we're going to win again. .e're going to win so much we'll get rid of isis and we will get rid of them fast. [applause] i was against the war in iraq from the beginning. we shouldn't of done it and we did it. that obama get out the wrong way. we did it. it destabilize the middle east. see, 2003, 2004. i said it would totally destabilize the middle east because you have iran and iraq. they were the same militarily. they fight fight fight and then they rest. a fight fight fight. we decapitated iraq and now iran is taking over. not only do they get the 150 billion dollars, maybe the worst transaction i've ever seen, done by the famous obama administration. the worst, the dumbest deals i've ever seen. we get nothing. got those hostages before we

the countries are currently emprovided in a dispute with china over portions of the south china sea. china has taken to building islands to strengthen her claim in apparent defiance of international law. yet the asean countries do not have a unified stand with regard to their big neighbor. something that president obama wants to help them address while meeting with them in california. the u.s. has been a stabilizing force in the asian pacific since world war ii. now with a rebalances there are more troops in the region and they're patrolling waters to ensure freedom of navigation. not all the leaders agree that the u.s. is the perfect counter balance to a growing china. regardless this is a significant step for u.s. and asean relations one which is hoped to carry on for years to come. it is a full hit of the promise made by president obama to be the first american pacific presidential >>> an independent consultant on china explains why progress on the dispute over the sousdz china sea will be difficult >> there are two great forces, u.s. on one side and china on the other. you have t

this is the way that china -- that china governs hong kong.he move would cost $1.5 billion for hsbc. this is a time when they're trying to cut cost. they're trying to cut $5 billion by the end of 2017. these costs are to be factored in. angie: it looks like u.k. to those conversation seriously. thank you. coming up, china returns to the fray after the new year break. we will see what will we see? always -- will we see a selloff? coming up next. ♪ >> the stories making headlines -- taiwan has ended the search for victims of last week's earthquake. hundred 16 people were pulled from the rubble. all that two of the dead were found in the apartment complex which collapsed in a 6.4 magnitude quake. architectser and two have been arrested opposition of negligent homicide following accusations that corners were cut in construction. china has called on the u.s. to formally and 76 years of hostility towards north korea, in order to persuade kim jong on to give up nuclear weapons. besides remain. technically at war the head of china's foreign affairs co

>>> taiwan says china has deployed missiles on a disputed island in the south china sea. hello. also coming up russia says it categorically rejects accusations its has bombed hospitals in north syria. the judge in u.s. asks afpple to unlock one of the st bernadino's attacker phones >>> china appears to have deployed missiles on a disputed island in the south china sea. the taiwan ease defense minimum see says beijing has placed surface to air missiles on an island. ownership of the island is disputed by taiwan, vietnam, chinese and the philippines. the president is appealing for calm. >> translation: i think the south china sea is a region that everyone pays close attention to, especially on the issue of the dispute over seventy in the south china sea. it is a tense situation, so we call on all sides to stick to the principle of resolving the dispute over the south china sea in a peaceful manner. self restraint is most important >>> china's foreign minister says the claim is an attempt by the western media to create news stories. >> translation: i hope that the media everywhere,

this china?'s a large and important market, of course. we [indiscernible] haslinda: are you keeping a close eye on the economy? will that slow down conflate to slower spending? >> [indiscernible] haslinda: you've been undergoing a restructuring to streamline this operation. where are you? >> we have achieved all goals for last year, [indiscernible] haslinda: your non-core business -- what is the status of that transaction? >> that has been accomplished. we managed to [indiscernible] haslinda: so is that flexibility -- are you done? >> for the majority of that, [indiscernible] people in the industry say that it is a very competitive environment. why do you have an advantage? >> our advantage and innovation is in our [indiscernible] haslinda: and going forward, given the environment right now, we have cheap oil. how is that translating in terms of what your business is doing? >> [indiscernible] haslinda: all right. we have to leave it there. the defense area -- angie: all right. thanks so much for

get along great ith china. largest bank in the world. it is my tenant. buying condos for tens of millions of dollars. i have the bank of america building in california. i own a big chunk of that. i got that from china through a very complex set of transactions. i think china is terrific. i'm not angry at china. i'm angry at our leaders for not being able to compete with china. [applause] we're going to get things changed. we're going use our best people. we're going to start winning again. strong military. take care of our vets. have such great trade deals. we're going to win again. e're going to win so much. we'll get rid of isis and we will get rid of them fast. [applause] i was against the war in iraq from the beginning. we shouldn't have done it and we did it. that obama got out the wrong way. we did it. it destabilized the middle east. you can see, 2003, 2004. i said it would totally destabilize the middle east because you have iran and iraq. they were the same militarily. they fight fight fight and then t

already china and the u.s. had been discussing new security council resolutions based on a north korea nuclear test last month, but those new resolutions were moving very slowly, but now the security council is faced with this new issue that has fallen right in their lap that they now have to deal with. on sunday it's going to be very interesting to see how all sides position themselves, especially china. historically north korea's strongest ally >>> u.s. republican presidential hopefuls have squared off. donald trump was back on stage. seven candidates took part in the debate. our correspondent has the latest from new hampshire >> reporter: the big story coming in this debate was marco rubio and the momentum he generated from his third place finish in iowa. that made him the first of attacks. donald trump is ahead of the polls and believes he will top the polls come tuesday. ted cruz is trying to build on the momentum of his win in iowa. jeb bush, john kasich, they all did well, chris christie had a goodnight,

sale in china are booming. so a lot of people are buying cars. american companies like general motors had a very good year in china. >> they're building factories there. >> yeah. >> because the market of china is huge. always there are some problem. there are some other opportunities. >> let me ask you about macao, and base on what happened with hong kong. i remember being in china just government in hong kong. talking to people we're not expecting the chinese government to change hong kong. they wanted hong kong what it is that was to be a international banking and investment center. they've been hands off allowing hong kong to be hong kong. when they took macao they encouraged countries to invest heavily in macao and then there were all of these crackdowns. what we're seeing now instead of the high rollers coming in and spending vast amounts of money they're trying to bring more of the general population of china to come to macao. am i correct in my thinking there. let me put it this way. for a few years maca

there is a new china. you can speak to that new china. the new board, the entrepreneurship. i think we are going through a cyclical, you can't help but go over that adjustment. that will last two or three years. it comes at a bad time for the rest of the world, because when you look at its impact on commodity prices -- and not just commodity prices, but the other economies in brazil and so on -- and when you look at the vulnerability of the rest of the world, in terms of monetary policy, that's a bad combination. we'll get past that. a bad year in china is a great year in almost any other country. francine: do you question their commitment to structural reform? what are the dangers, if the structural reforms are not being pushed through? madame lagarde: we went through a couple of years of intense discussions with the chinese authorities, because we were going to review the baskets of currency that define the value. it is the elusive currency of the imf. if you asked me, if the chinese authorities would complete the reforms, that they had to take in order to satisfy the crit

xi appearingin and in china. is popular in china. they increasingly work together in the united nations. but there are still limits on their working together. there is a certain amount of smoke and mirrors in trying to present a sino-russian partnership has more than it is to date. that whatnot said russia is doing in the ukraine and crimea is meeting with its approval. russia has not affirmed china's claims in the south china sea. there is mutual suspicion but they are coming together as well. host: robert daly talking about -- talking about china. if you want to ask questions, (202) 748-8001 republicans. (202) 748-8000 democrats. .ndependence, (202) 748-8002 caller: i have three comments. -- his analysis of china's economic status is fundamentally flawed. the most polluted planet on the earth is china. this affects their gdp, everything about them. we think that the air pollution is a problem, but it is just the tip of the iceberg. everything that is grown in china is contaminated with heavy metals. everything made in china is cont

it is over china and china isn't invited to this meeting. and i would say that that is probably the big elephant in the room where the u.s. is going to try courts these nations. particularly in the security area. so while tpp is important to the u.s., the fact remains it hasn't even passed here in the u.s. so until it does, these other nations are on the fence, can't even participate in that. so economically speaking, you know, it's not as important. frankly, the u.s. does more trade with the northern asian powers, and really, this is more about a security issue around south china sea. >> you've mentioned tpp a few times, the transpacific partnership, less than half of the signatories that are coming to this summit are actually part of this. can you think this is an opportunity to for the u.s. to gain more members to sign on? >> they can try, but i don't think it's going to be very productive use because i think the other countries just aren't ready to sign on to the standards that this trade agreement wants to put in place. and these standa

china is militarizing the south china sea. >> china has been developing reefs, deploying missiles and hardware to manmade and natural islands in in what admiral harris says is an effort to exert control and deny access in the united states. >> when they put their vast missile systems on the parasells, and build three runways. when te do all of that, they are changing the operational landscape in the south china sea. >> reporter: carter told congress the u.s. is spending millions on weapons counter-china and russia. he listed crows missiles on a submarine, to a new generation of long-range bombers, aexotic swarming drones made on a 3d printer. unless spending is impressed, it's increased. >> there's no doubt in my mind we have a competitive edge over china. were we no to maintain an investment profile as outlined. we'd lose the competitive edge over time and find ourselves unable to advance interest in the pacific. >>> apple says the fbi wants a government operating system to access all iphones. next, the company returns to court in its fight over a locked phone belonging to one of san

it would be china, india and senior china. that doesn't have anything to do with the one child policy, this has to do with population growth and the fact that they're living longer. the problem the one child policy has is that they reduce the working population to support the aging population. these people are going to grow older. some of the other problems such as gender imbalance and what this could result in whether this results, some of the speculation we don't know for sure. we definitely know that this big group of elderly people will age and that will raise a lot of issues for china. >> today we are seeing china's economy beginning to slow after three decades of rapid growth. as any of that slowing related to the one child policy? >> it is because one of the biggest challenges of the economy is manufacturing. that was fueled by cheap labor. now the abundance has gone down. there's just fewer workers. they want to get paid more. so china is trying to transition out of that into a more consumer-based economy but then you

the china fact is being felt in other areas.als training lower, copper off after we saw a manufacturing slowdown, service is not getting as much as they had previously. we're also seeing the demand side of the equation, so too d oes the supply side of the equation because we are seeing oil lower after opec is ramping up their supply. let's have a look at gold. there is a bit of risk aversion, money continuing to move into bonds. we are still seeing these fields push lower, global sovereign bonds at the lowest borrowing cost in 12 months. yields come down on the u.s., on france, continuing on the tenure side of the trade. let's have a look at stocks to watch. some earnings coming in, thick and fast. upnair up, managing to ramp profits. s up, wooing sale sup in the broadband potential. vallourec could plunge on the open, a guest service company money,s to raise concerns being hit by europe and brazil restructuring. jonathan: thanks very much. how does asia trade? a fairly mixed session. haidia: after a terrible january, it was a c

>> there is a transition going on in china.y are moving away from the ledstment-led and export model and they are moving more into a consumption-led model with more services provided to their population. so this is what is happening now. a trough in terms of investment and in some areas, overinvestment, like in the case of steel, which is creating a serious problem of oversupply in many countries in the world. the price has dropped. you see the result of this transition. it has gone on for some time. we're going to have oscillations and some turbulence over the next few years. anna: do you expect further stimulus from chinese authorities? we had seen weakening in the services pmi number. what can they do to target that? angel: china is inevitably going to be moving more into a services-led economy because, first of all, the exports and manufactures that they do are going to have a greater content of services and knowledge to this is how it is with every single economy that becomes more sophisticated. more and more services are

china and the u.s. had been discussing new security council resolutions based on a north korea nuclear test last month, but those new resolutions were moving very slowly, but now the security council is faced with this new issue that has fallen right in their lap that they now have to deal with. on sunday it will be very interesting to see how all sides position themselves, especially china. historically north korea's strongest ally >>> we have a professor here on foreign studies who joins us. it is that a country facing hard sanctions, extremely poor and can appear to launch this satellite into orbit >> yes. we have been getting used to this behaviour over the last couple of decades. even we've been seeing the practice thing. we remember this is the sixth such launch. south korean probably in general, i think, is very familiar with it. this is lunar new year holiday here in this country. some people have expressed their anger that north korea has committed this regrettable act at the time of the celebr

how will taiwan build relations with china from now on?me of the election hinged on this question. 12 months after moving to taiwan, lo will obtain voting rights. how does he feel about china's relations with taiwan and hong kong? he heads to a cafe run by a friend from hong kong where local immigrants from hong kong and taiwanese have come together to exchange views. >> hong kong and taiwan continue to experience difficulty in the relations with mainland china. those who decided to leave hong kong admits these difficult times continue to watch the future of china with mixed emotions. the lo's family favorite place is a park near the beach. they still have concerns about how to make a living in taiwan, but they plan to stay and carve out a new life here. >> this family moved to taiwan seeking the most important thing in life -- their children's future. what sort of future awaits their children? ♪ steves: the dramatic rock of cashel is one of ireland's most evocative sites. this was the seat of ancient irish kings for seven centuries. st. p

on one side, china on the other. you have to feel sorry for the other countries who are torn between these forces, economically and in terms of stability and safety. this is not the year for much progress because it is a u.s. election year. in terms of trade policy, in terms of china policy and, indeed, in terms of pacific policy, asean policy, this will all change after november. you will have to listen the candidates to know there are different views on china, very different from what obama has done, different views on trade. very different from what obama has done. in a sense this is a marker trying to show that obama has made progress on his pivot towards asia, but in terms of substantive progress, very little can happen until the election and there's a new president in office. even the tpp, the great trade deal that obama help negotiate, that's not going to be voted on in the u.s. until after the election >>> the former israeli prime minister is said to begin an 18 month prison sentence for bribery. he is the fi

they need to have a strategy or run china, thinking about china. it is concerning in some ways, but it is part of a natural transition. to your point about urbanization, a lot of urbanization has taken place and it will slow down. there is the reforms of the registration system, so people will still be able to live in , and urbanization is going to be an important trend to drive consumption. a is currently working 100-hour work weeks because of all the volatility in china. that does not pay off with what the data it in the market showed today. enda: they are killing themselves along the way by virtue of poor communication. they are getting scolded by the imf, by ben bernanke, that they have got to tighten up the message and communicate clearly what they are doing on the exchange rate. brendan: exactly what you are saying, six months ago people were not willing to tell you that on the record. they would tell you after the show was over the china is not communicating. now there is the frustration -- what are you doing with your reserve? what is your

northwest china is home to many muslims. with a population of 80,000, the largest ethnic minority in lanzhou are called hui. throughout china today, there are 55 official ethnic minorities. of these, ten are muslim. the largest of these are hui. ( man delivering sermon ) narrator: although the hui have their own autonomous region in ningxia, other autonomous regions like xizang, or tibet, speak distinct languages. many in xinjiang, like the uighurs, speak turkic languages. many of these muslims feel oppressed by china for cultural and economic reasons. some seek a breakaway state of east turkistan. some have used violence, and the chinese government tries to crush their movement. hui are loyal chinese and are found throughout china. they speak the dominant languages of the places where they live. now we get into the issue of race and ethnicity. many people, uh, believe that, uh, these are... this is a group of people that is really of han chinese race but islamic religion. the hui themselves don't see it that way. they see t

they moved from rural china into urban china.nable to transmit -- have they been able to transmission them to become real consumers? and if they have, what economic growth is that creating? reporter: that is a very slow process, though. mileuld see this from a away. why do you think people are panicking at the moment? >> first of all, this has all been highly telegraphed by the chinese government. we are talking 20 or 30 years of policy about building infrastructure, talking about creating consumption. none of this comes as a surprise. but this is happening on top of unfortunately, a slowdown in many of the other developed economies around the world. it may be just bad luck or it might be bad timing, but the reality is we need a strong, growing economy in the world to drag the other economies with it. we have allied upon china for so long to be the big growing economy out there. without china growing in double digits or even high single digits, the world is unsure of where to rely upon for growth. reporter: that was president coh

china refutes this saying 90% of the south china sea is theirs. but what's undeniable is that the steadily increasing tension has led to a military buying spree. >> i think china's military expansion, its increases in its defense spending and its actions in the maritime area, have in fact triggered something of an arms race. >> reporter: a united states military footprint in the region is not new. but it's been steadily growing over the last several years. >> militarization of the south china sea and particularly the artificial islands that will be used for military purposes by china is a concern for the united states. but it doesn't pose an existential threat. >> but the u.s. wants its presence felt. general lori robinson commands all forces in the region and presents a statement at the air show. >> what we're doing as team america and being out here to show our commitment to the region. >> reporter: and part of that show of strength in the region is this, the p-8 poseidon. the united states frequently flies them over disputed territory. >> wheth